Is SDC Techmedia overvalued or undervalued?

As of 2 July 2025, SDC Techmedia's valuation grade has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 5.27, an EV to EBITDA of 4.52, and a PEG Ratio of 0.05, which suggest that despite low earnings multiples, the stock is not priced attractively relative to its growth potential.
In comparison to peers, SDC Techmedia's valuation stands out against PVR Inox, which is rated attractive with a PE of 10.81, and Prime Focus, which is fairly valued with an extraordinarily high PE of 1650.64. The stark contrast in valuation metrics highlights that SDC Techmedia is priced significantly higher than its peers, reinforcing the assessment of being overvalued. Additionally, while the company has experienced a notable return of 32.95% over the past month, it remains down 20.18% over the last year, further emphasizing the disconnect between its current valuation and performance relative to the Sensex.